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Novadaq Technologies Inc. Message Board

  • canadaworm canadaworm Jan 27, 2013 5:02 PM Flag


    Any insight on the upcoming conference call and earnings report? I do like the fact that they are having the conference before the market opens instead of doing it after hours so all the after hours big traders cannot capitalize without us small potatoes people participating.

    Sentiment: Strong Buy

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    • andersongordon Jan 28, 2013 8:12 AM Flag

      It is very hard to develop patterns yet but the 38% (88 vs 64) increase in ISRGs "Firefly Systems" Q4/Q3 and the initial sales of NVDQs "PinPoint" (1 for sure, expect 2) if indicative of LifeCells "SpyElite Systems" (expect ~62 vs 44) would indicate around 150 new systems. Management has given guidance of 100-125. The higher than expected system sales and a return of ~$2 million (stock price dropped from $11 to $8.50) in "Other Revenue" from a "Warrant Revaluation" ($-8.23 Q3 when the stock price rose from $6 to $11 per share) bodes well for a suprise earnings of $.03 per share vs the expected -$.03 loss. There will be extra expenses as NVDQ ramps up hiring for their "PinPoint" roll out but I expect the increase in Kit sales to cover this. If they go positive earnings it will be 4-6 quarters sooner than the analyst expect. If this veiw plays out expect the stock to rise to the $12-15 range soon after Q4 conference call.

      Also look for Gross Margins to ramp up from 58% to ~63% as they leverage higher production from their capabilty to manufacture ~250 systems per quarter with current personel and assembly capacity.

      Market acceptance and company inefficienies as they transition through the startup phase of their new technology makes this all very fuzzy. The trend is strong, the timing is less sure but the investment potential is great here. Hope this helps. I appreciated your other contributions to this board Canadaworm.

      Sentiment: Strong Buy

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